- Posted by Jason on July 2, 2014 in Global Economies
Remittances to India are the money transfers that occur from Indian employees living and working abroad to family and friends back home in India. It was recently stated by the World Bank that India is a world leader in the receiving of remittances with international migrants of India sending $62 billion in 2012. Compare this with 20 years ago where the figure sat around only $2.1 billion. This shows the growth of remittances to India is increasing greatly and is set to reach record levels in 2015. There are many reasons behind this growth including work and education opportunity.
The Indian Diaspora’s Impact on the Indian Economy
There is said to be more than 200 million people who are living and working outside of their native countries and Indian workers make up a good portion of that figure. One might assume that with a large economy like India’s that the impact of remittances is small. This is not the case. Remittances to India are greatly important for the economy of India. Today, remittances make up around 3.08 percent of the country’s Gross Domestic Product, compared to the 0.7 percent it provided in 1990.
IT Education Fuels Search for Overseas Jobs
The reason behind this surge in money remittance to India could be attributed to emigration. The work opportunities overseas for Indian workers are plentiful, especially within the IT sector. Organisations around the world are increasing their demand for IT professionals and Indian workers migrating to the United States has been a trend since the mid-1990s. This is due to many institutes in India offering quality training in IT and better educating workers. However it is not just the United States where workers are moving to. Canada and the United Kingdom are also places of opportunity for Indian workers.
The ability to remit money to India has become easier also, due to the range of options workers have to transfer money. With the competitive rates of online remittance services such as OrbitRemit it is easier, faster and cheaper to send money home to India. Securing a job overseas can offer better money, provide invaluable experience and a chance to develop and work within established companies. As a result of earning more and still wanting to help financially back at home, it is no wonder remittances to India are increasing yearly.
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